Basic Health Insurance vs Major Medical Insurance

The cost of a health care plan is usually the main consideration when picking one. However, you should also take note of the extent of medical coverage that you get. Major medical insurance covers everything from the usual check-ups to major medical procedures. On the other hand, basic health insurance will only help pay for certain types of medical services.

Medical Coverage under Basic Health Insurance

Basic health insurance is ideally used as a supplement to medical insurance. Some people could only afford this type of insurance because of their small prevailing wage. Those who subscribe to this plan pay a low amount of premium to get cash reimbursements for their visits to the doctor, surgical procedures, and laboratory tests. The total amount of reimbursements is usually lower than the overall cost of the services given.

It is easier to apply for basic health insurance. The employee can consult a doctor of their choice without needing to get an approval or referral. They will not be checked for any pre-existing illness. However, reimbursements for treating pre-existing medical conditions will be received only after six months.

Coverage under the Major Medical Insurance

If the employees’ prevailing wage can afford it, employers may opt for major medical insurance. You will shell out more money, but it will provide wider medical coverage. It covers doctor visits, surgery, prescription drugs, rehabilitation, therapy, nursing home, and mental health care.

Examples of this type of insurance include PPOS, HMOs, and fee-for-service programs. It will covers check-ups, hospital visits, and outpatient care. It does not provide fixed cash reimbursements. Instead, the employee will be given a yearly out-of-pocket spending limit that covers your medical expenses even if the procedure they need is expensive. Some routine maintenance may be given for free for a small additional amount in the premium.